Public finance reform is widely regarded as one of the most successful stories in Slovakia’s economic transition, and the country keeps its status of a European frontrunner in enhancing the effectiveness of its public finance management. In light of this, the UNDP and the Ministry of Finance of the Slovak Republic (MF SR) launched the Public Finance for Development programme in 2009 as part of Slovakia’s official development assistance effort.
The aim of the Program is to facilitate the sharing of Slovak knowledge and experience in public finance management with partner countries, and advance their efforts towards sustainable human and economic development. Currently running in its third phase, the Programme focuses on providing technical assistance to countries of Eastern Europe and the Western Balkans going through transformation processes with an ambition to join the European Union.
It is based on two main pillars: the Public Finance for Development Programme (PFD Programme) and the Private Sector for Development Cooperation Programme (PSDC Programme). These two pillars are supported by the Development Cooperation Capacity Building of the Ministry of Finance (DEV CB).
Main Goals of Program
The Private Sector in Development Cooperation Programme is focusing on mobilization of private financial resources, knowledge, expertise and technologies that have the potential to support achievement of SDGs in beneficiary countries. The PSDC component was designed to assist Slovak companies, consultants, and other organizations (e.g. civil society organizations, academia) in entering new markets, sharing and addressing risks, identifying new, long-term business partners, and opportunities to invest in the developing countries, thus increasing their well-being.
The Project’s capacity building component aims to enhance the capacities of Ministry of Finance of the Slovak Republic officials in managing Slovakia’s development cooperation in an effective manner, using innovative tools and practices.
Partnership between the UNDP and the Ministry of Finance
The Public Finance for Development programme is grounded in a long-running cooperation between the UNDP and the Slovak Republic that originated in 2003 when the Slovak-UNDP Trust Fund was created.
The joint initiative is an example of an inclusive development partnership. which leverages the knowledge and technical expertise of the newly established donor, along with the wide reach and global context and presence of an experienced donor organization. The ongoing cooperation has been taking place under three different project frameworks over the last 10 years.
The initial stage of the programme was devoted to the identification of countries’ public finance needs, priorities, and selection of beneficiary countries. The identification process was based on a needs-driven approach, by which areas of assistance were chosen jointly with beneficiary institutions. This ensured that interventions targeted the highest priority needs for partner countries, and were in line with public finance capacities of the Slovak Republic.
Timeline of activities
September 2009 – june 2014
The “Public Finance for Development” project, launched by the Ministry of Finance and UNDP and implemented as a stand-alone project.
July 2014 – July 2017
Activities implemented under the “Slovak Republic – UNDP Partnership for Results in the International Development Cooperation” project run in cooperation between the Ministry of Finance and Ministry of European and Foreign Affairs on one side, and UNDP on another.
January 2017 – December 2019
The “Public and Private Finance for Development” project run by the Ministry of Finance and UNDP.